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• Generic (Market-Pull) Process• Technology-Push Products• Platform Products• Process-Intensive Products• Customized Products
Variants of the Generic Development Process
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Generic Process and Its Variants
• Generic (Market Pull) Products– Firm begins with a market opportunity, then finds
technology to meet customer needs– Examples: tools, sporting goods, furniture
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Generic Process and Its Variants
• Technology-Push Products– Firm begins with a new technology, then finds an
appropriate market– Distinction with generic
• additional activity matching: technology and market• concept development assumes a given technology
– Examples: Gore-Tex rainwear, Tyvek envelopes
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Generic Process and Its Variants
• Platform Products– Firm assumes new product will be built around
same technology as an existing product– Distinction with generic
• concept development assumes a technology platform
– Examples: consumer electronics, computers, printers
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Generic Process and Its Variants
• Process-Intensive Products– characteristics of the product are highly
constrained by the production process– Distinction with generic
• both process and product must be developed together from the beginning, or existing process must be specified from the beginning
– Examples: chemicals, semiconductors, snack foods, cereal
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Generic Process and Its Variants
• Customized (“Parametric”)– New products are slight variations of existing
configurations– Distinction from generic
• similarity of products allows for highly structured development process
• development process almost like a production process
– Examples: switches, motors, batteries, containers
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Criteria for choosing an organizational structure
• How important is cross-functional integration?• How critical is cutting-edge functional
expertise to business success?• Can individuals from each function be fully
utilized for most of the duration of a project?• How important is product development
speed?
Product Design and DevelopmentKarl T. Ulrich and Steven D. Eppinger
2nd edition, Irwin McGraw-Hill, 2000.
Chapter Table of Contents
1. Introduction2. Development Processes and Organizations3. Product Planning4. Identifying Customer Needs5. Product Specifications6. Concept Generation7. Concept Selection8. Concept Testing9. Product Architecture10. Industrial Design11. Design for Manufacturing12. Prototyping13. Product Development Economics 14. Managing Projects
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Product planning
• Corporations typically plan products many years in advance
• Product planning ensures that products support overall business strategy– Determine mix of new products vs. upgrades– Optimize past experience as leverage into new
products– Decide which market segments to target
PlanningPlanning
Product Development Process
ConceptDevelopment
ConceptDevelopment
System-LevelDesign
System-LevelDesign
DetailDesign
DetailDesign
Testing andRefinement
Testing andRefinement
ProductionRamp-Up
ProductionRamp-Up
Four Phases of Product Development
The product planning phase precedes the product development process.
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The Product Planning ProcessQuestions
• What PD projects will be undertaken?• What mix of new products, platforms, and
derivative products to pursue?• How do the various projects relate to each
other as a portfolio?• What will be the timing and sequence of the
project?
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Mission statement
• What market segments to consider?• What new technologies to incorporate?• What are the manufacturing and service goals and constraints?•What are the financial targets of the project?• What are the budget and time frame for the project?
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Product plan
• The product plan identifies the portfolio of products to be developed by the organization and the timing of their introduction to the market
• The plan may divide projects into four categories: new platforms, derivatives of existing platforms, product improvements, and fundamentally new products
A Product Plan
1996 1997 1998 1999 2000
Hodaka
Lakes
H-Net
L-Net
Astro
595 6010 392 393
New Platforms
Derivatives
Improvements
Fundamentally New
Legend
Project
Product Release
Types of product development projects: New product platforms, derivatives of existing platforms, incremental improvements to existing products, and fundamentally new products
The Product Planning Process
Evaluate and Prioritize Projects
Allocate Resources and
Plan TimingPortfolioof
Projects
Multiple Projects
Complete Pre-Project PlanningProduct
PlanMission
Statements
Product Development
Process
Identify Opportunities
1. Identify opportunities2. Evaluate and prioritize products3. Allocate resources and plan timing4. Complete pre-project planning5. Reflect on the results and the process Product “Mission Statement”
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S1. Identify OpportunitiesIdea Sources for New Products
• Marketing and sales personnel• Research and technology development
organizations• Current product development teams• Manufacturing and operation organizations• Current or potential customers• Third parties such as suppliers, inventors, and
business partners.
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S2. Evaluate and Prioritize Projects
• Opportunity funnel can collect 100s or even 1000s of opportunities during a year.
• Select the most promising projects to pursue.
• Basic perspectives to prioritize:– Competitive Strategy, – Market segmentation, – technological trajectories,– and product platforms
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Market Segmentation
• Dividing a market into segments allows the firm to consider the actions of competitors and the strength of the existing products of the firm with respect to each well-defined group of customers.
Market Segment Map
1998 19991997 2000
Department
Workgroup
Personal
40 ppm network
$20k
30 ppm $10k
20 ppm $8k
40 ppm
$16k
65 ppm
$23k
55 ppm
$20k
25 ppm $9k
30 ppm $10k
25 ppm $10k
35 ppm $15k
20 ppm $7k
40 ppm $20k
60 ppm network
$35k
LegendXerox
product
competitor product
potential competitor
65 ppm network
$31k
Year ofRelease
Hodaka Project
Lakes Project Lakes
Extensions
Hodaka Project
Lakes Project Lakes
Extensions
Mar
ket S
egm
ent
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Technological Trajectories
• In technology intensive businesses, a key product decision is when to adopt a new technology in a product line.
• Technology S-curves are conceptual tool to help to think about such decisions.
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Product Platform Planning
•A platform development project creates the architecture of a family of products.•Derivative Products may be included in the initial platform development effort or derivative products may follow thereafter.• One technique for coordinating technology development with product planning is the technology roadmap.
Platforms vs. Derivatives
time
Platform BPlatform Product
Development
Derivative Product
Development
Legend
Project
Product Release
Research and Technology
Development
Platform A
Technology RoadmapFunctional Elements
Photo- receptor
Scanner Layout
Toner Type
Output Modes
User Interface
Cylindrical Drum
2D CCD Array w/Optical Reduc.
Keypad
3-Pitch Belt Photoreceptor
Full-Width, Linear Array without Optical Reduction
Touch Screen, Remote PC
Color: Paper, Fax, Scan, Local Network, Internet
Document Centre
220, 230
Document Centre
240, 255, 265
Document Centre 2XX
Hodaka Project
Lakes Project
Lakes Extensions
Document Centre 3XX
Next Platform
Technologies
n-Pitch Belt Photoreceptor
High Temperature
Low Melting Point
Low Melting Point, Low Emission
Touch Screen
Image Processing
Automatic Image Quality
Diagnostics On-Board Diagnostics
Remote-Dialup Diagnostics
Remote Repair
Time
1200 dpi600/1200 dpi 1800 dpi600 dpi
Monochrome: Paper, Fax, Scan, Local Network, Internet
Product-Process Change MatrixExtent of Production Process Changes
Exte
nt o
f Pro
duct
Cha
nges
NewCore
Process
NextGeneration
Process
SingleDepartment
Upgrade
Tuning andIncremental
Changes
NoProcessChange
NewCore
Product
NextGeneration
Product
Additionto Product
Family
MinorProduct
Enhancement
NoProductChange
LakesProject
Research andTechnology
Development
BreakthroughDevelopment
Projects
PlatformDevelopment
Projects
DerivativeProduct
Development
CurrentProduct/Process
Support
S3. Allocate Resources and Plan TimingAggregate Resource Planning
. .
0%
20%
40%
60%
80%
100%
120%
140%
Year 1 Year 2 Year 3
C a p a c i t y U t i l i z a t i o n
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Lakes Project Mission Statement
Product Description· Networkable, digital machine with copy, print, fax, and scan functionsKey Business Goals· Support Xerox strategy of leadership in digital office equipment· Serve as platform for all future B&W digital products and solutions· Capture 50% of digital product sales in primary market· Environmentally friendly· First product introduction 4thQ 1997Primary Market· Office departments, mid-volume (40-65 ppm, above 42,000 avg. copies/mo.)Secondary Markets· Quick-print market· Small ‘satellite’ operationsAssumptions and Constraints· New product platform· Digital imaging technology· Compatible with CentreWare software· Input devices manufactured in Canada· Output devices manufactured in Brazil· Image processing engine manufactured in both USA and EuropeStakeholders· Purchasers and Users· Manufacturing Operations· Service Operations· Distributors and Resellers
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Project Timing
• Timing of product introductions• Technology readiness• Market readiness• Competition
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Mission statements
• Brief (one sentence) description of the product
• Key business goals• Target market(s) for the product• Assumption and constraints that guide the
development effort (Manufacturing, Service, Environment)– Stakeholders
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Reflect on the results and theprocess
• Is the opportunity funnel collecting an exciting and diverse set of product opportunities?
• Does the product plan support the competitive strategy of the firm?
• Does the core team accept the challenges of the resulting mission statement?
• How can the product planning process be improved?